A person taking an instrument, other than a person having rights of a holder in due course, is subject to a claim of a property or possessory right in the instrument or its proceeds, including a claim to rescind a negotiation and to recover the instrument or its proceeds. A person having rights of a holder in due course takes free of the claim to the instrument.
Structure Arkansas Code
Title 4 - Business and Commercial Law
Subtitle 1 - Uniform Commercial Code
Chapter 3 - Negotiable Instruments
Part 3 - Enforcement of Instruments
§ 4-3-301. Person entitled to enforce instrument
§ 4-3-302. Holder in due course
§ 4-3-303. Value and consideration
§ 4-3-305. Defenses and claims in recoupment
§ 4-3-306. Claims to an instrument
§ 4-3-307. Notice of breach of fiduciary duty
§ 4-3-308. Proof of signatures and status as holder in due course
§ 4-3-309. Enforcement of lost, destroyed, or stolen instrument
§ 4-3-310. Effect of instrument on obligation for which taken
§ 4-3-311. Accord and satisfaction by use of instrument
§ 4-3-312. Lost, destroyed, or stolen cashier's check, teller's check, or certified check